Analysts at Research Affiliates have listed a number of countries which have entered correction territory, after an almost decade-long bull run, including Japan, the US, the UK, Canada and Germany.
The report Where is the economy going? said the situation in these regions was beginning to look "ominous" as they entered the latter stages of the business cycle.
Research Affiliates' Vitali Kalesnik, Jim Masturzo and Michele Mazzoleni found by combining two metrics; the output gap, which measures the level of production, and country-specific slowdowns and expansions as measured by the Federal Reserve Bank of St. Louis, one could see what stage of the business cycle a country was in.
The report labelled the four stages of the business cycle as bull economy, correction, bear economy and rebound.
Along with those five economies, the report also found Denmark, Switzerland and Australia was also in correction territory.
However, the analysts pointed to four events that could push these economies from a correction into a recession.
The first was the ongoing trade war between the US and other blocs including the European Union and China as this has the "biggest potential" to impact global GDP.
In the latest trade war saga, US President Donald Trump and European Commission President Jean-Claude Juncker agreed on 25 July to bring an end to the tit-for-tat and work together towards "zero" tariffs, barriers and subsidies.
In what is seen as a breakthrough after weeks of stalemate, where the European Commission threatened retaliation on $300bn of US products "across sectors of the US economy" if Trump went ahead with his tariffs on the car industry the two proclaimed a "new phase" in transatlantic relations.
However, last month, the Chinese government vowed retaliation in response to Trump's $200bn trade tariffs threat on Chinese goods, claiming it will "take comprehensive quantitative and qualitative measures".
Research Affiliates' Kalesnik commented: "Global growth over recent decades has been fueled by international trade. Tariffs and barriers will not just put a stop to growth, but are also likely to reduce global GDP."
The analysts highlighted the UK's exit from the EU as another issue which could disrupt the international flows of capital and trade, especially in Europe while Italy's debt crisis, combined with the coalition between the Five Star Movement and Lega could translate into a "systemic eurozone" crisis.
Political concerns in Italy have already fallen back in the recent months after the two parties revived a coalition deal, with the two proposing a new finance minister after the previous proposal was rejected by President Sergio Mattarella.
"Growing political disagreement across the countries of Europe on a range of policy matters could be detrimental to the long-run prospects of these nations," Kalesnik added.
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